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Different sources said last Friday Prudential Financial Inc. is leading the race to get two Japanese life insurers put on sale by American International Group (AIG) Inc. in a agreement owing to close next week. The two insurance companies are AIG Edison Life Insurance Co. and AIG Star Life Insurance. They were put on the block 2008 as part of AIG’s efforts to shed assets worldwide following a bailout by the U.S. administration. The sources said U.S.-based Prudential and Canada’s Manulife Financial Corp. took part the first round of bidding in December 2008. They are expected to place final bids next week, speaking on condition of anonymity as the bidding is not public.

One of the sources said, the final price can be between 100-200 billion yen ($1.1-$2.1 billion). The sources said Prudential is the front-runner. With offering a better worth, Prudential appears willing to buy both insurers whereas Manulife may be interested in buying only one. With knowledge of the bidding process one source said “At this point Prudential is in the lead because it is offering a higher price.” However, Manulife Life Insurance spokesman Minoru Shimizu, Prudential of Japan spokesman Masato Kuroda, and a spokesman for AIG in Japan all declined to comment. But the sources said the information is true.

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We can’t predict the future. We always fear about our future, want to be ready to cover our financial needs, when, something bad happens. And there is no other best thing then an insurance that can protect you in crisis moment.

But Insurance is that type of product we all love to hate. We pay thousands of dollars in premiums each year for health, dental, auto, homeowner, life, disability, long-term care coverage. You might hate paying those cost, but it’s smart to pay.

Insurance companies understand our fear about our future life and they offer a variety of insurance policies designed to protect us from disability to disease and everything in between. They offer lots of policies to improve their business. There are some kinds of insurance that you extremely should have but there are just as many that you shouldn’t buy. Here is a list of Insurance policies that you are probably better off without.

1. Mortgage life insurance
2. Private mortgage insurance
3. Life insurance for Babies
4. Credit card fraud protection
5. Credit card loss insurance
6. Cancer insurance
7. Car rental insurance
8. Car rental damage insurance
9. Accidental death insurance
10. Identity theft insurance
11. Flight insurance
12. Extended warranties
13. Automobile collision insurance
14. Flood insurance
15. Water line coverage
16. Unemployment insurance
17. Crime insurance
18. Hospital indemnity insurance

Recently RSA Insurance Group has signed a framework agreement to acquire Direct Insurance Financial Investments’s 50% holding in Intouch Insurance Group, which is a joint venture with direct operations in Poland, the Czech Republic and Russia for GBP70 million in cash.

According to RSA Insurance Group, the proposed investment is dependable with its emerging markets’ strategy to develop its direct distribution capability and its focus on motor as a core scheme. The British Insurance company said that the agreement is non binding and achievement of the transaction is subject to a number of conditions including attaining regulatory approvals.

The RSA Insurance Company was formed following the merger of Sun Alliance and Royal Insurance in 1996 but re-branded under the RSA brand in April 2008.

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Last Wednesday, the Travelers Cos. Inc.  Authority said it is providing $1.4 million to support St. Paul Public Schools district. School administrations are hailing the gift as a corporate model.
A large amount of the money from the St. Paul-based insurer will be used to extend the district’s Advancement via Individual Determination program down to the elementary school level. The program, which is currently in 11 secondary schools, assists middle-performing students get ready for college. The money especially, is for college-readiness for students and leadership training for principals as well.

Schools Superintendent Meria Carstarphen says it’s the first of a number of similar announcements expected in next weeks. Carstarphen said in November a dozen local businesses and foundations had pledged to make new commitments to support the city’s schools. She added the deal shows a new age of how businesses will work with the district and share accountability. She said “Collaborations like the partnership with Travelers will move us toward long-term solutions.”

The insurance premiums for businesses continued a five-year trend of falling rates during the fourth quarter of 2008, but recently the data suggest a reversal of this trend may soon be underway. According to the RIMS Benchmark Survey, a survey of policy renewal prices as reported by North American corporate risk managers, the rates for property, general liability, and directors and officers (D&O) liability premiums all decreased at a significantly slower pace than in recent quarters.

The data from RIMS Benchmark Survey corroborates Advisen’s, recently the forecast that have been the commercial insurance premium market cycle is close to its bottom. According to the Advisen analysts, the commercial insurance prices should begin increasing by the fourth quarter of 2009 or the first quarter of 2010.

The average general liability premium fell more than any other line at 5.9 percent in the fourth quarter, but tragically this decrease is modest when compared to the 9.6 percent decline in the third quarter. And the property premiums were off by 3.8 percent, again modest when compared to the 8.5 percent decline in the third quarter. Workers’ compensation continues to reflect little unpredictability with a 0.8 percent decrease in the fourth quarter, unfailing with a two-year trend.

Daniel H. Kugler, member of RIMS board of directors and assistant treasurer, risk management at Snap-on Inc. says “Risk managers tracking RIMS Benchmark Survey results are keenly aware that we may not see continued price reductions for long,” and also added “The most recent data show that the soft market isn’t over yet, but it may be losing steam.”

Executive vice president at Advisen Dave Bradford says “Overcapacity has driven a long soft market and the events of this past quarter may portend a market shift for commercial insurance,” and added that “In addition to much higher than average catastrophe losses in 2008, insurance companies are facing claims from the subprime meltdown, global credit crisis and now even from the Madoff scandal. Reserves for these claims and material losses in investment income have led to negative earnings and new capital is scarce,”

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